Krafton, the South Korean gaming giant known for games such as PUBG: Battlegrounds and Battlegrounds Mobile India (BGMI), has acquired a controlling stake in 12-year-old Indian game studio Nautilus Mobile for $14 million in an all-cash deal.
On Friday, the South Korean gaming company confirmed to TechCrunch that it had acquired “more than 75% of the shares” Nautilus, a gaming studio popular for its Real Cricket franchise targeting cricket fans.
The Pune-based studio will continue to operate independently after the deal, which is expected to close by the end of the month, with all 45 employees remaining on the Nautilus payroll, Crafton told TechCrunch.
Founded in 2013, Nautilus has received millions of downloads for its Real Cricket franchise, which currently has five games, including Real Cricket 24 and Real Cricket Premier League.
According to Sean Hyunil Son, CEO of Krafton India, Krafton is looking to strengthen Nautilus’ “core competency” in mobile cricket games, which are in high demand in cricket-loving India, by enhancing existing games in the short term and exploring new genres in the long term.
“Our development capabilities at Nautilus will help Krafton double down on its gaming strategy in India, and together we will likely be able to create more games, more genres, for both the Indian market and the global market in the future,” Nautilus CEO Anuj Mankar told TechCrunch.
Over time, the company plans to expand its presence in other geographical regions.
The mobile gaming market in India is growing steadily due to the large number of young smartphone users. According to Niko Partners, a market research company, mobile games dominate the country’s overall gaming industry in terms of spending, accounting for 77.9% of total revenue. The firm also estimates that mobile gaming revenue in the country will grow from $640 million in 2023 to $1.1 billion by 2028.
Krafton, whose net profit last year grew 119.3% year-on-year to approximately $889 million (1.3 trillion won), sees India as a promising and key market to continue its success. However, most of the growth in India so far has come from its flagship game for the local audience, Battlegrounds Mobile India (BGMI), which last year achieved its highest ever sales and exceeded 200 million downloads.
The company has other games, including Bullet Echo India, Road To Valor, and CookieRun. However, they have yet to replicate the success story of Battle Royale, the localized version of PUBG.
This deal could help Krafton move beyond BGMI and explore new avenues of success, including cricket and other sports games, to attract new gamers.
In 2020, the Indian digital entertainment and technology company JetSynthesys acquired a 100% stake in Nautilus Mobile. This was followed by a $5.4 million strategic investment by Krafton in 2022.
Sohn told TechCrunch that while Nautilus’ potential was the reason for the initial investment, Krafton saw its role as a minority shareholder as limited in terms of supporting the studio’s content development. Acquiring a controlling stake, he said, would allow him to work more deeply with Nautilus and take a more active role in the development of core content.
“We strongly believe that cricket games have great potential. And we want to work with Nautilus to do our best to really realize the potential of this market, not only in India, but in other countries where cricket is played and other countries that are becoming more active in cricket,” Nihansh Bhat, head of corporate development at Krafton India, told TechCrunch.
JetSynthesys will remain a “significant minority” investor in Nautilus Mobile and will continue to work with the studio in various areas, including esports. The company has already worked with the studio to help bring cricket teams, including those affiliated with the Indian Premier League, the world’s most lucrative cricket tournament, to partner with Real Cricket.
“Over a long period of time, we would certainly like to see increased revenues, increased user base, improved user retention, all the usual things, as well as hopefully new deals,” Bhat said when asked how Krafton would measure the success of the deal once it is completed.
So far, Krafton has invested more than $200 million in India, excluding Nautilus Mobile.
20% of Krafton’s investments in India are in gaming and related companies, although the company has also invested in Indian startups, including payment platform Cashfree, audio platform Kuku FM, and influencer marketing platform One Impression. It has also backed funds, including gaming company Lumikai and India’s first fund, IMM Investment.
“We are looking at acquisitions, moderate investments, and even business collaborations with established players in the country,” Son said.
Nautilus will join 14 other Krafton game studios operating in markets around the world.
